India Bullion Exchange Projects Over $12 Billion FX Flows in FY26 on Gold & Silver Trading Boom

The India International Bullion Exchange (IIBX), situated in Gujarat's GIFT City, has forecast that foreign exchange (FX) flows into the country will surpass $12 billion in the financial year 2026 (FY26). This optimistic outlook is primarily attributed to a projected robust growth in trading volumes for gold and silver.

According to data, gold contracts traded on the IIBX are anticipated to increase to 120 tonnes in FY26, a rise from the cumulative 101.4 tonnes traded up to March 2025. Consequently, the estimated dollar flow generated from gold trading is expected to climb from $8.45 billion to a higher figure. This growth signifies IIBX's expanding role in facilitating international bullion trade and its contribution to India's foreign exchange reserves and market liquidity.

Impact: This development is expected to boost India's foreign exchange reserves, enhance liquidity in commodity markets, and solidify GIFT City's position as an international financial hub. It could also indirectly influence the jewelry sector and other businesses reliant on gold imports. Rating: 7/10

Heading: Difficult Terms Bullion: Gold or silver in bulk or in unrefined form. Foreign Exchange (FX) flows: The movement of money between countries, involving the conversion of one currency to another. In this context, it refers to the inflow of US dollars generated from trading bullion. GIFT City: Gujarat International Finance Tec-City, a central business district under development in Gandhinagar, Gujarat, India. It is designed to be an international financial services and IT hub.